Hi! I bought a used VW Touareg 2006 from a dealership for $37,000 in 2007. The car was very new (barely 9,000 miles and in excellent condition and fully loaded) but had been in an accident before and the original damages on that vehicle were almost $35,000, but it was restored completely. 3 years later, I got hit on the rear by another car for no fault of mine and the damages on that were worth $7,000. It was still quite new at about 24,000 miles. I approached Geico for a diminished value claim after my repairs were done and they tell me they cannot offer a diminished value settlement because of the $35,000 damages of past history on that car. I thought that argument was frivolous. If I had two vehicles, both in exactly the same condition – one with $35,000 damages on it and another worth $42,000 damages on it. Will I not pay less for a car with $42,000 damages? There has been some diminishment of value for sure. Diminished value is the difference I would get for my car had this car not been in the second accident. If I were to sell the car right now, will the second accident not be at the top of the buyer’s mind and therefore, will he not pay less?

OK, first of all, "new" is based on the year, NOT on the milage.

Second, what the car is worth, has NO BEARING on what you paid for it. Near as I can tell, it’s worth about $19,000 right now, assuming it’s a 2006.

Third, you cannot collect dimunition in value on your OWN policy.

Fourth, after it’s been in one accident, subsequent accidents do NOT diminsh the value, assuming they’re not a total loss.

Fifth, even if it was somoene else’s accident, the dimunition in value is usually around 5% of the damages – you’re arguing about $350 here.

If you had two of these cars, with $35,000 or $42,000 damage, they’d BOTH be totalled. If your car was given a salvage title, it’s going to be worth about HALF of a car that was never salvaged, even after it’s been completely repaired – bringing the real actual cash value of your car, down to $10,000.

You think someone’s going to pay you $350 less because of a second accident? Or a fifth? Or an 18th? Nope. Only that first accident counts. You already BOUGHT that car with a diminished value, after the first accident. You paid way too much for it, though.